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Home Depot
Company Snapshot: Home Depot operates a chain of more than 2,000 retail stores that sell lumber and other building materials as well as house furnishings, tools and garden supplies in the US, Canada and Latin America. Based in Atlanta, Home Depot employs over 345,000 people. In fiscal 2006 the company reported revenues of more than $81.511 billion. Basic information Ownership status: Publicly traded Website: http://www.homedepot.com Corporate accountability Corporate accountability: Home Depot CEO, Robert Nardelli, resigned in January 2007 after six years in the top spot at the company. Nardelli was subject to intense criticism over his compensation package, which many shareholders thought was too large given the weak performance of Home Depot's stock. His severance package was valued at $210 million, including stock options. CNN Money, 01/03/2007 In a formal letter to Home Depot’s Compensation Committee Chair, the AFL-CIO asked the company to take necessary measures to recover any improper stock option grants to executive directors. Additionally, the AFL-CIO is urging the resignation of co-founder and director Ken Langone, who oversaw the improper stock option grants from 1999 to 2000. These grants were made in violation of Home Depot’s stock option plan. Inquires about Home Depot’s stock options began in June of 2006 by the Securities and Exchange Commission. In as many as five instances prior to December 2000, directors retroactively approved stock option grants to executives. Home Depot’s internal review found about $10 million of unrecorded stock option expense. AFL-CIO, 06/29/2006 At the 2006 shareholder meeting, Walden Asset Management and other shareholders are calling on Home Depot to prepare a diversity report including the following * A chart identifying employees according to their gender and race in each of the nine major EEOC-defined job categories for the last three years, listing numbers or percentages in each category * A summary description of any affirmative action policies and programs to improve performance, including job categories where women and minorities are underutilized * A description of any policies and programs oriented specifically toward increasing the number of managers who are qualified females or minorities Interfaith Center for Corporate Responsibility, 05/01/2006 In 2005, then-CEO Robert Nardelli received a total of more than $37.8 million in compensation, including company stock options. From previous years’ stock option grants, Nardelli cashed out nearly $2 million in stock option exercises. The Home Depot CEO has an additional $13.7 million in unexercised stock options from previous years. AFL-CIO, 04/05/2006 Home Depot achieved a score of 86 on the Human Rights Campaign 2005 Corporate Equality Index which rates large corporations on policies that affect their gay, lesbian, bisexual and transgender employees, consumers and investors. Human Rights Campaign, 09/20/2005 In 2005, Home Depot spent a total of $540,000 on lobbying expenditures and $410,000 in the 2004 election cycle. Lobbying firms hired by Home Depot lobbied on issues such as domestic and foreign trade, superfund sites, and health issues. Center for Responsive Politics, 01/01/2005 In August 2004 Home Depot agreed to pay $5.5 million to settle discrimination claims brought by workers at stores in Colorado. A complaint filed by the Equal Employment Opportunity Commission (EEOC) alleged female and minority employees were paid less and disciplined more severely than white males, and were passed over for promotion. Some employees who reported discrimination suffered retaliation and managers failed to investigate complaints, the EEOC said in its complaint. Home Depot denied any kind of misconduct but said it agreed to the payout as part of a voluntary mediation with the EEOC to avoid protracted and costly litigation. EEOC, 08/25/2004 Consumers filed a class-action lawsuit against Home Depot and Lowe’s for misleading consumers with interest-free credit promotions. The companies were alleged to have cheated customers by applying store credit payments to interest-free balances following major promotions, leaving customers’ interest-accruing balances untouched. ConsumerAffairs.com, 01/21/2004 From 1999 to 2003 Home Depot employees and their families have given $1.5 million in soft money contributions to the Republican Party and Bush election campaigns. In reciprocation, the 2003 energy bill included provisions to lift the tariff on a Chinese-made fan sold by Home Depot. Neither the House nor the Senate ever debated the provision, which was added to the bill behind closed doors. Public Citizen, 12/04/2003 Home Depot Executive Vice President Francis Blake served for 10 months as George W. Bush’s deputy energy secretary in 2001 before accepting his current position with Home Depot. Karen Knutson, wife of the primary in-house lobbyist for Home Depot, was formerly a top aid to Dick Cheney. Public Citizen, 12/04/2003 In October 2002, the Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Home Depot alleging the company discriminated against a black employee. The employee was fired from the company's Newport News Virginia store after she agreed to a plan to pay a new employee "under the table" in violation of the company's rules. However, according to the EEOC complaint, another white employee, who was more responsible for the irregular payment, was promoted. The EEOC alleged that the black employee, who was a human resource manager, should not have been fired before the white assistant store manager, who had a previous discipline record and helped come up with the plan to pay the new employee off the books. 10/01/2002 In September 2002 the U.S. Equal Employment Opportunity Commission filed a sex discrimination lawsuit against The Home Depot, accusing the company of repeatedly denying a woman for jobs that it hired less qualified men to fill. The case was resolved with a $125,000 settlement in January 2003. Home Depot agreed in the future to refrain from discriminating against any employee or applicant for employment based on sex. Associated Press, 09/06/2002 Labor: In July 2001 a supervisor at California Home Depot filed a class-action lawsuit against the company alleging that it denied workers in its California stores millions of dollars in overtime by misclassifying some employees as exempt. The suit alleges that some supervisors were routinely required to work 50 hours or more each week without overtime pay because they were improperly classified as exempt. San Diego Union-Tribune, 08/01/2001 Environment and product safety: In April 2007, Home Depot introduced Eco Options, a line of products that they're promoting as environmentally friendly, including energy efficient light bulbs and natural insect repellents. The line currently includes 3,000 products but Home Depot hopes to increase it to 6,000 products by 2009, which would represent 12 percent of the company's sales. Unlike established certification systems for environmental products which rely on third party evaluation, Home Depot will have complete control over what can be accepted into its Eco Options line. New York Times, 04/17/2007 In November 2001 Lowe's and Home Depot were called upon to stop selling arsenic-treated lumber to the public because of the wood's cancer-causing capabilities. According to the Healthy Building Network and Environmental working Group (EWG), pressure treated wood products sold by the retailers and sampled in 13 states contained an average of 120 times the amount of arsenic allowed in a 6 ounce glass of water by the U.S. EPA. The wood is treated with arsenic as a pesticide and to avoid rot, however according to the National Academy of Sciences exposure to arsenic causes lung, bladder, and skin cancer in humans, and is suspected as a cause of kidney, prostate, and nasal passage cancer. Environmental Working Group, 11/08/2001 Financial information Detailed financial information Stock ticker symbol: HD Location Headquarters 2455 Paces Ferry Rd. NW Atlanta, GA, 30339-4024 United States